Councils struggling with council tenant rent arrears…

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Direct payments:

With councils now
exposed to direct payments for the rent element of Universal Credit,
some are now struggling with massive and mounting rent arrears, as in
the case of Sandwell Council.

Direct payment of Housing Benefit was introduced for private landlords around 2004 under the 2004 Housing Act. This meant that the benefit was paid initially direct to the tenant, whose responsibility it then was to make sure the landlord was paid the correct amount of rent. The thinking behind the change was that it garners responsibility in money handling and budgeting in the tenant on welfare, nudging them away from the “nanny state” mentality.

Until the introduction of Universal Credit, and not all local authorities are affected as yet, councils have been in the envious position of having Housing Benefit paid directly to them, making their job of minimising debt much easier. Now, however, where UC is involved, because the payment to the individual tenant involves up to six benefits, councils have to rely on their welfare council tenants splitting off the rent element and paying back the rent.

Whereas private
landlords large and small have had to learn to manage direct payments
efficiently, or face going out of business, it seems that some
councils are struggling to do this. According to the City of
Wolverhampton Express & Star, Sandwell Council rent
arrears hit £5.7m because its IT system is struggling with Universal
Credit.

The Council outsources its rent arrears to Capita’s IT system, but it seems the system is outdated and incapable of correctly targeting debtors. Instead it is flagging up around 14,000 arrears cases every week, despite the fact that many of them are not in arrears and don’t need chasing up.

The result is that
the nearly £6 million owing in rent to Sandwell Council is steadily
increasing. This is because Council staff are wasting time manually
managing the outdated IT Housing system, which they claim Capita has
failed to improve despite the Council raising concerns since 2013.

Housing management
at the Council have warned that the debt could rise by another £3.8
million if the system is not improved soon and changes in how
payments are collected are not implemented.

The authority says
it is now about to spend over £400,000 on new IT software, which it
says it hopes will boost income by almost £700,000 in the first 12
months of operation by correctly identifying tenants most at risk of
not paying.

Nigel Collumbell, a
service manager for housing at the Council, told The Express
& Star thatthechanges in welfare payments had seen staff workloads increase by
60 per cent.

He says:

“With the
backdrop of welfare reform this is producing a really challenging
environment to collect and prevent rent arrears.

“We have had a
trend of increasing rent arrears over the last three years and there
has been a real steep increase in the amount of rent owed to us by
local authority tenants since the roll-out of Universal Credit in
Sandwell since November 2018.

“In terms of some
of those specific challenges, Universal Credit is far much at the top
of the tree.

“As a consequence
of the full roll-out, we have an additional £3.4 million rent debit
we have to collect that would have paid directly onto (our) accounts
by housing benefit.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Councils struggling with council tenant rent arrears… | LandlordZONE.

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FINALLY revealed: Rogue landlord database contains just 18 individuals

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Sacked housing minister Esther McVey’s last act in post is to reveal that just six names have been added to the database since August last year.

Esther McVey’s final
act as Housing Minister before being ‘relieved of her duties’ this morning has
been to reveal the awkward truth about the government’s national rogue landlord
database, which she has revealed contains just 18 people and five companies listed
on it following its launch 16 months ago.

The admission came
in a statement released by McVey just before losing her ministerial job in a
written parliamentary answer to a question posed by MP Sir Christopher Chope
earlier this week.

Last year it was
revealed that just 12 landlords had been added to the rogue database, so a
further six have now been included.

“There are 18 individual landlords and property agents and five
companies currently registered on the database for offences committed since 6
April 2018,” said Mcvey.

“For mandatory inclusion on the database a landlord must be convicted of a banning order offence and receive a banning order.

“If the landlord receives a conviction for a banning order offence or receives two of more civil penalties for [such an] offence within a 12 month period then the local authority has the discretion to include the landlord on the database.

“The database is intended for the worst and most persistent offenders, who neglect their responsibilities to provide tenants safe homes.”

But the Residential Landlord Association says this admission, together with rising rents revealed by RICS this week, highlights a failure of government policy for the private rented sector. Asked why the association thinks the rogue landlord figures are so low, an RLA spokesperson told LandlordZone that it is likely to be a mixture of councils who don’t have the resources to add landlords to the database, and that there may not be as many ‘serious’ rogue landlords as defined by the database within the market as previously thought.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – FINALLY revealed: Rogue landlord database contains just 18 individuals | LandlordZONE.

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String of data shows government policy failure

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The RLA is claiming claiming that a string of data released today demonstrates the failure of government policy for the private rented sector.

The Royal Institution for Chartered Surveyors is warning that private sector rents are set to increase by 2% over the next year as a result of the demand for such housing exceeding supply as landlords dis-invest from the sector.

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Government policy for rented housing is failing

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Landlords are claiming that a string of data released today demonstrates the failure of government policy for the private rented sector. The Royal Institution for Chartered Surveyors is warning that private sector rents are set to increase by 2 per cent over the next year as a result of the demand for such housing exceeding […]

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Mark Smith (Barrister-At-Law) Landlord tax planning strategies – Liverpool

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Our Hon. Legal Counsel, Mark Smith, Head of Chambers at Cotswold Barristers will be presenting an overview of several landlords tax strategies at the pin Liverpool Meeting property networking event Thursday 27th February 2020.

The event will be held at The Shankly Hotel

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I can do what I want when I want – Wrong!

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I recently read the shocking story about Mr Valentine-Brown who was murdered by his landlady, her partner and two accomplices when they decided they would take the eviction process into their own hands.  Although an extreme case, this story serves to highlight just how quickly problems can escalate when emotions are running high and landlords take an unlawful route to eviction.

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No parking spaces for redevelopment say Council!

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As painful as the planning process is – the council have approved our plans, but scuppered us with the worse possible restriction if we proceed. How they can come to such a conclusion and feel it is a viable solution.

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The most dangerous trade professions and jobs in Britain revealed and safety tips for amateur DIYers

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The latest research by tradesperson comparison
site, HaMuch.com,
has found that the skilled trade occupations account for the highest rate of
non-fatal injuries as a percentage of all injuries sustained since 2016 and
with Spring approaching leading to more of us attempting DIY jobs at home,
they’ve provided a few basic tips to help avoid any unexpected accidents.

HaMuch.com
analysed Gov.uk
data and also found that skilled trades professionals were also most at risk of
musculoskeletal disorders such as Carpal Tunnel, Tendonitis and muscle and
ligament strain.  

The data does provide one silver lining
however, with skilled trade professionals one of the least likely to suffer
from stress, depression and anxiety caused by work.  

Tree surgeons top the table as the most
dangerous trade, with heights clearly a factor as tilers and scaffolders also
rank in the top three most dangerous trades.  

Plumbers and bricklayers were the least likely
to be injured while at work, with electricians also ranking surprisingly low.
 

What is it doing the damage?  

Contact and injury with power tools is the most
prevalent cause of accidents amongst the trades, closely followed by the same
contact with non-power tools.

Electrocution and lawnmower related injuries
also ranked high, along with incidents with ladders and misuse of tools.

It’s good to see that plenty of public health
announcements highlighting the importance of lifting with your knees are paying
off, as injury through lifting heavy items is currently the least common
injury.  

Top tips to avoid injury 

While accidents can happen in a professional
environment, these accidents can also be common within the house as more and
more of us take to DIY around the home in order to save money.  

With that in mind, HaMuch.com,
has put together a few vital tips to remember when undertaking home
improvements yourself.

Know what you’re doing

This should always be the starting point but
more often than not we go wading in thinking we know what we’re doing. This
might be a harmless, albeit time-consuming approach to an Ikea flatpack, but
when you’re talking about the more tasking DIY jobs it can be costly. Always
read the manual on proper use and if you’re undertaking a job for the first
time, always do your research online first to get a comprehensive understanding
of the potential dangers involved.

The majority of accidents with power tools, in
particular, happen when improper use causes a lack of control, often down to
holding them incorrectly, our hands slipping into the blade or drill piece, or
the tool falling from our grip and causing injury to other areas of the body.

Always make sure you have a firm grasp in the
right areas and don’t try any unconventional manoeuvres even if you feel
comfortable using the tool itself.

Check the power

This is a major one when it comes to injury
through electrocution as well as the use of power tools. Undertaking electrical
work should always be done by a professional but one of the major causes of
injury both in the professional workspace and the home is starting work without
turning the power off first.

This also goes for power tools such as drills,
saws and garden tools. When you’ve finished using them turn the power off
either at the plug or on the tool itself if it’s cordless. This avoids any
injury from accidentally activating the tool while you aren’t in proper
control.   

Concentrate and clear the area

Tradespeople carry out their work in a
professional capacity and even then accidents happen. 

At home having the kids around, the football on
the TV or music on the radio can distract you from the work at hand and just a
few seconds of lapsed concentration can result in injury.  

If you have a big job that requires the use of
dangerous tools or materials, clear the house from kids and other distractions
and then clear your work area from any trip hazards and obstructions.

Protect yourself

Protective gear is used in the trades for a
reason and while it may be hot, uncomfortable or make you feel a bit stupid,
opting to go without can increase the level of injury sustained during an
accident.

At the very least, pick up protection for your
eyes, a sturdy pair of gloves to protect from injury from tools or hazardous
substances, and if you’re lifting heavy objects invest in a pair of steel toe
cap boots.

Always work with or near someone

While you want to clear the house of
distractions, working with someone can dramatically reduce the risk of injury.
Not only can they hold materials while you work on them, they can also secure a
ladder and help lift heavy objects.

If an accident does happen, they can help
reduce the damage by turning off power tools, moving you from the dangerous
area, helping to apply pressure to a wound, calling an ambulance and alerting
them to where you are located.  

Founder and CEO of HaMuch.com,
Tarquin Purdie, commented: 

“You’re probably thinking that these tips go
without saying and they should, but all too often accidents in the trade
workplace and home are caused by neglecting the most basic of safety measures
either through choice or a momentary lapse of concentration.

If it can happen to a trained professional who
undertakes these tasks week in week out, it can certainly happen to the amateur
DIY enthusiast at the weekend and while your jobs at home may be more simple,
accidents can often happen with the easiest of tasks such as cutting wood,
going up a ladder, or changing a light switch. 

You should always be 100% confident in your
abilities before attempting a job and if you’re not it can be more
cost-effective, as well as better for your health, to hire a tradesperson.
While you might think the cost of doing so is high, in many cases, there is
clearly a reason for this as they remain one of the most likely professions to
have an accident in the workplace and this danger is going to require a certain
cost.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – The most dangerous trade professions and jobs in Britain revealed and safety tips for amateur DIYers | LandlordZONE.

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BREAKING: Green London mayor hopeful backs ‘freezing of rents’

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Sian Berry wants the capital to be the testing ground for English rent controls before similar schemes are rolled out elsewhere.

A Green Party Mayor of
London would freeze rent in the capital as a way to kick-start similar schemes across
the UK.

If Green candidate Sian
Berry beats Sadiq Khan in the 7^th May election, she has today pledged
to immediately freeze the amount landlords can charge while a commission looks
at ways to lower rent prices within two years.

She tells Metro.co.uk:
“The way to do it is in stages. The answer is going to come back (that rents
should be) lower than now – and that’s the radical part.”

London rented households
have seen rents increase by 1.2% in 2019, to an average of £1,450 a month –
more than double the median rent for England, according to the latest Office
for National Statistics figures.

Berry suggests lessons
could be learnt from the varying forms of rent caps in cities such as New York,
Paris and Copenhagen.

A pilot scheme in the
capital could then lead to similar policies being introduced in other UK
cities, by finding ways to reduce prices, says Berry: “We want some certainty
in the market in the meantime. We need to have an interim period to have a
freeze, which is what they have just done in Berlin to take some heat out of
the system…and create the absolute certainty of the direction of travel.”

The freeze would last until
the commission report was published, probably in 18 months to two years, she
added.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Green London mayor hopeful backs ‘freezing of rents’ | LandlordZONE.

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Call of the Week-electrical safety

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The RLA has received a number of calls regarding electrical safety inspections in the last month. New regulations are coming into force that will require landlords in England to have an electrical installation condition report (EICR) in place before they grant or renew a tenancy from July 1st 2020. The rules are set to be […]

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